MarketWatch (August 10)
“The S&P 500’s earnings story is getting stronger and broader, and that’s good news for the stock market — particularly for shares of industrial, financial and technology firms.” With earnings already reported by 80% of S&P 500 constituents, “it is safe to say that this earnings season is on track to be a blowout.” What’s more, “nontech companies are leading tech with a higher margin of earnings outperformance relative to expectations. Nontech companies have topped estimates by about 10%,” while the Magnificent Seven and other tech companies are averaging a 4% beat rate.
Tags: Blowout, Broader, Earnings, Expectations, Financial, Industrial, Nontech, Outperformance, S&P 500, Shares, Stock market, Stronger, Technology
Fortune (July 5)
“In a note on Tuesday” Bank of America “analysts reaffirmed their year-end price target of 7,100 for the broad market index, representing a 5% drop from the week’s closing level.” Citing “extreme levels” of speculation, BoA believes the market is poised for a “snapback,” also noting “that S&P 500 companies are generating less free cash flow relative to net income compared to historical trends. That’s as so-called hyperscalers have seen their free cash flow plunge due to massive spending on the AI boom, eroding their earnings.”
Tags: AI boom, Analysts, BoA, Broad market, Earnings, FCF, Historical trends, Hyperscalers, Index, Net income, Note, Price target, S&P 500, Snapback, Speculation, Spending
Market Watch (June 30)
“Even Wall Street bulls are worried about a stock-market pullback after dazzling second quarter. The earnings story remains strong, but uncertainty surrounding the path of Fed policy and worries about excessive leverage propping up the market are near the top of the list of concerns”
Tags: Bulls, Concerns, Dazzling, Earnings, Excessive leverage, Fed policy, Pullback, Q2, Stock market, Uncertainty, Wall Street, Worried, Worries
Barron’s (May 27)
“Stocks are near their all-time highs.” Moreover, “investors are nervous about the numerous risks that could hit stocks and the economy. High oil prices and persistent inflation fears. The possibility that this will push the Federal Reserve to raise interest rates. Worries about artificial-intelligence disrupting software and other sectors.” Nevertheless, Goldman Sachs believes equities “are still good investments” because “rapidly rising earnings could keep pushing up stock prices” and, rather than dumping equities, investors can manage risk in other ways.
Tags: AI, All-time highs, Earnings, Economy, Equities, Fears, Fed, Goldman Sachs, Inflation, Interest rates, Investors, Nervous, Numerous, Oil prices, Stock prices, Stocks
The Times (May 27)
“Corporate leaders who think decades ahead in business become incredibly short-sighted in advocacy, financing ideas that become roadblocks to innovation and growth.” Big Tech is currently finding out about the phenomena that Milton Friedman dubbed “the suicidal impulse of the business community.” For years, Big Tech “helped fund climate activism,” but they now face “backlash as AI data centres drive demand for energy and infrastructure growth.”
Tags: AI, All-time highs, Earnings, Economy, Equities, Fears, Fed, Goldman Sachs, Inflation, Interest rates, Investors, Nervous, Numerous, Oil prices, Risk, Stock prices, Stocks
MSN (January 23)
“UPS reported sharply lower earnings in the third quarter and said it expects lower revenue and thinner profit margins ahead.” The global shipper cited “a slowing global economy…for its gloomy forecast,” and its concern over “global macroeconomic uncertainty” has broader implications. “UPS is something of an economic bellwether, as its trucks move an estimated 6% of US gross domestic product and 3% of global GDP, the broadest measure of economic activity.”
Tags: Bellwether, Earnings, Economy, Global macroeconomic uncertainty, Gloomy forecast, Lower, Profit margins, Q3, Revenue, U.S., UPS
Bloomberg (November 22)
“The American consumer is limping into the holiday season. That was the upshot from a week of big-box retailer earnings that came with signs of caution among shoppers increasingly worried about a softening job market and persistent inflation.” Target and Home Depot are struggling, while “even Walmart Inc., the belle of the retailer ball with huge profits and a rosy forecast, sent an economic warning of sorts” since its growth “came largely from groceries and mid-tier customers looking for bargains — both signs of skittishness among consumers.”
Tags: Bargains, Big-box, Caution, Earnings, Economic warning, Forecast, Holiday season, Job market, Persistent inflation, Profits, Retailer, Shoppers, Skittishness, Struggling, U.S., Upshot, Walmart, Worried
Barron’s (July 3)
“It’s a muddled picture, one that suggests that demographics and policies have slowed U.S. labor supply while uncertainty over future tariffs may have curbed labor demand. Clues for how this stasis plays out should emerge in the earnings reporting season set to kick off later this month.”
Tags: Clues, Curbed, Demographics, Earnings, Emerge, Future tariffs, Labor demand, Labor supply, Muddled picture, Policies, Reporting season, Stasis, Suggests, U.S., Uncertainty
Barron’s (March 17)
“They’ve gone from the Mag Seven to the Lag Seven.” Apple, Microsoft, Nvidia, Amazon.com, Alphabet, Meta Platforms, and Tesla collectively represented over “half of the S& P 500’s gain of 23% in 2024 as they rose an average of 60%.” This year they are “down an average of 15%” and “now account for about 95% of the index’s decline of 6% in 2025.” However, the Mag Seven “aren’t destined to fail or fade into insignificance. They remain too dominant…and too reasonably priced, with six of the seven trading for 18 to 30 times projected 2025 earnings. (Tesla, at 85 times, is the notable exception.)”
Tags: 2024, 2025, Alphabet, Amazon.com, Apple, Decline, Dominant, Earnings, Fade, Fail, Lag Seven, Mag Seven, Meta Platforms, Microsoft, Nvidia, Reasonably priced, S&P 500, Tesla
Reuters (November 29)
“It’s time for Toyota Motor’s two biggest domestic rivals to deal with their problems by joining forces. Nissan Motor’s woes are the more obvious: poor results prompted the $9 billion manufacturer into an emergency overhaul this month. But $40 billion Honda Motor’s autos unit is subpar, too. Welding them together would give scope to cut costs, charge earnings and invest more efficiently and effectively in electric vehicles and other technology.”
Tags: Costs, Earnings, Effectively, Efficiently, Emergency, EVs, Honda, Nissan, Overhaul, Results, Rivals, Technology, Toyota, Woes
